Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Purchasing
Information
Requested Action
title
A. MOTION TO WAIVE County Business Enterprise goal requirement per Section 1-81.3(c) of the Broward County Business Opportunity Act.
ACTION: (T-11:10 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0.
B. MOTION TO AWARD open-end contract to low responsive, responsible non-County Business Enterprise bidder, Siemens Industry, Inc., for HVAC Chillers and Cooling Towers Preventative Maintenance, Repairs, and Rental Services, Bid No. BLD2125052B1, for the Broward County Aviation Department, in the initial one-year estimated amount of $1,130,794, which includes allowances in the amount of $180,000; and authorize the Director of Purchasing to renew the contract for four one-year periods, for a five-year potential estimated amount of $5,653,970, contingent upon Broward County’s receipt and acceptance of a payment and performance bond from Siemens Industry, Inc.
ACTION: (T-11:10 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0.
body
Why Action is Necessary
Motion A: In accordance with Section 1-81.3(c) of the Broward County Business Opportunity Act, Board approval is required to waive County Business Enterprise goal requirements.
Motion B: In accordance with the Broward County Procurement Code, Section 21.47(a), Award and Execution Authority, the Board shall make all awards, and authorize the execution of the associated contracts, with a value of more than $500,000, inclusive of the value of any renewals or extensions provided for in the contract.
In accordance with Section 332.0075(3)(b), Florida Statutes, a governing body must approve, award, or ratify all contracts executed by or on behalf of a commercial service airport over the threshold amount provided in Section 287.017 for CATEGORY FIVE [i.e., $325,000] as a separate line item on the agenda and must provide a reasonable opportunity for public comment. Such contracts may not be approved, awarded, or ratified as part of a consent agenda.
What Action Accomplishes
Motion A: Waives the County Business Enterprise (CBE) goal.
Motion B: Provides an open-end contract for preventative maintenance, repairs, and rental services of air conditioning chillers, and cooling towers for the Broward County Aviation Department.
Is this Action Goal Related
No
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE BROWARD COUNTY AVIATION DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development (OESBD) designated this solicitation reserved for certified County Business Enterprise (CBE) firms. No CBE vendors responded to the solicitation, which required 100% self-performance of the scope of work by the prime vendor; therefore, OESBD determined there are no subcontracting opportunities and recommended no CBE goal (Exhibit 2). Motion A requests Board approval for the waiver of a CBE participation goal.
The purpose of this contract is to provide preventative maintenance, repairs, and rental services of air conditioning chillers, and cooling towers for Broward County Aviation Department.
All prices, terms and conditions will remain fixed for the initial one-year contract period. Upon completion of the initial one-year contract period, the contractor may make a timely request for a price adjustment to the contract for each year thereafter prior to its anniversary date in accordance with the price escalation clause of the contract.
The allowance items in this contract, in the total annual estimated amount of $180,000, include: $150,000 for parts and materials; $5,000 for permits and shop drawings; $10,000 for rental of specialized heavy equipment; and $15,000 for specialized subcontracting services. Expenditures under these allowance items must be approved by the contract administrator and will be reimbursed at the contractor’s actual incurred cost, without mark-up.
In accordance with the Broward County Workforce Investment Program, Broward County Administrative Code, Section 19.211, these services are subject to the Workforce Investment Program. Siemens Industry, Inc. has agreed to be bound to the contractual obligations of the Workforce Investment Program.
In accordance with the Broward County Living Wage Ordinance, Broward County Code of Ordinances, Section 26-101(k), these services are covered services. Siemens Industry, Inc. has agreed to be bound to the contractual obligations of the Living Wage Ordinance.
The apparent low bidder, S&R Engineering Group LLC dba Air Changes Mechanical, did not demonstrate that they have the experience or qualifications or capacity to service this contract. Based upon Broward County Aviation Department’s non-concurrence, the Director of Purchasing deemed the apparent low bidder, S&R Engineering Group LLC dba Air Changes Mechanical, to be non-responsible to the solicitation.
Broward County Aviation Department has reviewed the bid submitted by Siemens Industry, Inc. and concurs with the recommendation for award (Exhibit 3). Five vendor performance evaluations have been completed for Siemens Industry, Inc. with an overall rating of 4.02 out of a possible rating of 5.0. Copies of the vendor performance evaluation are available upon request.
The Purchasing Division has researched the prices submitted by the recommended bidder, Siemens Industry, Inc., and determined that the prices submitted are fair and reasonable in comparison to prices offered for the previous and current solicitation (Exhibit 4). The bid submitted by Siemens Industry is $164,259.96 lower than the highest bidder.
This solicitation was advertised without a payment and performance bond requirement. However, it was subsequently determined that a payment and performance bond was required since the scope of services involves “repairs upon a public building” per Section 255.05(1), Florida Statutes. Since the estimated amount for these repairs, including labor and materials, exceeds $200,000 a payment and performance bond is required per Section 255.05, Florida Statutes. The Broward County Aviation Department estimates that the annual estimate for the repairs, including labor and materials, is approximately $440,000. The cost of the payment and performance bond (which will be a reimbursable cost to vendor) is estimated to be no more than 2% of the annual estimated repair cost.
Incumbent: Siemens Industry, Inc.; Contract Number and Title: BLD2119689B1, AC Chillers, Cooling Towers & PC-Air Units, Maintenance, Repairs & Rental Services. Contract Term: March 12, 2020 through March 11, 2023. Expenditures to date: $1,551,822.09.
The Recommendation for Award was posted on the Purchasing Division website from January 17, 2023 - January 24, 2023. There was no protest or appeal filed against this procurement.
The bid posted on September 30, 2022 and opened on November 9, 2022; three bids were received with one declination (Exhibit 1).
The initial contract period shall begin March 12, 2023 and will terminate one year from that date.
Source of Additional Information
Robert E. Gleason, Director, Purchasing Division, (954) 357-6070
Fiscal Impact
Fiscal Impact/Cost Summary
Each requirement processed against this open-end contract will be funded by the appropriate source at the time of release.
Requisition No. AVM0007658